Today's property tax generally taxes both the land and any improvements on the land, such as buildings or structures. This differs from Henry George's single-tax proposal, which would only tax the unimproved value of land. Additionally, property taxes do have a deadweight loss, as they could potentially deter individuals from improving or developing their property due to increased tax liabilities.

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Today's Property Tax

Question 336

Multiple Choice

Today's property tax

A) taxes only raw land.
B) is exactly the same as Henry George's single-tax proposal.
C) taxes land and the improvements to land.
D) has no deadweight loss since the amount of revenue going to the government equals the reduction in the landowners' surplus.

Correct Answer: